The luxury goods industry recovered quickly after the massive slump at the beginning of the corona pandemic. The global market was already above the level of 2019 last year, and the start of this year has been promising despite the Ukraine war, corona pandemic and inflation.
This is the result of an analysis by the management consultancy Bain & Company published yesterday, Wednesday. This took a close look at the market with the Italian luxury goods association Fondazione Altagamma.
The global luxury goods industry turned over 288 billion euros last year, seven billion euros more than in the pre-crisis year 2019. The market includes high-quality clothing, shoes, leather goods and jewelry. “The luxury goods industry is once again showing a high level of resilience when it comes to crises,” says Bain partner and industry expert Marie-Therese Marek. “Despite the current economic and geopolitical challenges, the positive market development should continue.”
The figures for the first quarter underscore this confidence: Compared to the same quarter of the previous year, currency-adjusted industry sales increased by 13 to 15 percent. Industry experts expect a market volume of up to 380 billion euros by 2025, depending on economic developments.
According to the analysis, Europe and the USA are primarily responsible for the upswing. In Europe, the demand for high-quality goods rose sharply last Christmas. The Russian market makes up two to three percent of the global luxury goods market, which is hardly significant in an international comparison.
In the US, on the other hand, luxury consumption is increasingly shifting to smaller cities, and the interest of the younger generation is increasing, according to the analysis. South Korea has also picked up speed, whereas the months of corona restrictions in China have noticeably dampened the mood to buy.
Source: Nachrichten